Committee To Review Economic Capital Framework

Explanation :

• The six-member panel led byformer RBI governor Bimal Jalanwas formed on December 26, 2018, to review the Economic Capital Framework (ECF)for the Reserve Bank after the finance ministry wanted the RBI to pursue global best practices and transfer more surplus to the government.
• It has been charged with the responsibility of assessing the top practices followed by central banks globally in the process of assessment and provisions for risks. The government and the RBI under its former governor Urjit Patel had been at odds over the Rs 9.6 lakh crore surplus capitals with the central bank.
• The finance ministry was of the view that the buffer of 28% of gross assets maintained by the RBI is well above the global norm of around 14%.
• Other Members of the panel: Rakesh Mohan, Subhash C Garg, NS Vishwanathan, Bharat Doshi and Sudhir Mankad.
• Past Committees to deal with the ideal size of RBI's reserves:
• V Subrahmanyam (1997)
• Usha Thorat (2004)
• Y H Malegam(2013)

Source: Civil Services Chronicle Online